The Vale of Glamorgan Council

Scrutiny Committee (Economy and Environment): 6th October 2015

Report of the Director of Environment and Housing Services

Revenue and Capital Monitoring for the period 1st April to 31st August 2015

Purpose of the Report

To bring to the attention of this Scrutiny Committee, the position in respect of revenue and capital expenditure for the period 1st April to 31st August 2015 regarding those revenue and capital budgets, which form this Committee's remit.

Recommendation

It is recommended that :-

The position with regard to the 2015/16 revenue and capital monitoring is noted.

Reason for the Recommendation

That Members are aware of the position with regard to the 2015/16 revenue and capital monitoring relevant to this Scrutiny Committee.

Background

Council on the 4th March 2015 (minute nos. 941 and 940 respectively) approved the Revenue and Capital Budgets for 2015/16. Reports monitoring expenditure are brought to this Committee on a regular basis.

Relevant Issues and Options

Revenue

The Revenue Budget and projected outturn for 2015/16 are shown in the table below. It is currently projected that services under this Committee will outturn within target at year end.

Economy &Environment

Revenue Budget

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

£000

£000

£000

Highways Maintenance & Engineering

8,423

8,523

-100

Waste Management

8,361

8,261

+100

Grounds Maintenance

3,503

3,503

0

Building Services

0

0

0

Economic Development

825

825

0

Leisure

2,481

2,481

0

Planning and Transportation

6,525

6,525

0

Total Economy & Environment

30,118

30,118

0

A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.

Highways Maintenance & Engineering - There is currently a £58k adverse variance against the profiled budget. This is due to the delayed implementation of car parking charges and street lighting part night switch off. A car parking charging report has now been considered by Cabinet and this Committee, however it has been decided that further consultation is required before introducing charges. The roll out of part night street lighting commenced in July 2015, therefore, the full year saving will not be achieved in both these areas. However, there are a number of small favourable variances across Highways which can be used to offset the shortfall in these savings, resulting in a projected overspend at year end of around £100k. The original budget for 2015/16 takes account of the £619k savings required for this financial year.

Waste Management - There is currently a small adverse variance of £4k to the profiled budget. The early implementation of the Prosiect Gwyrdd contract which is providing considerable savings for the waste disposal budget has been offset by a slight delay in the implementation of some of the other savings within Waste Management. While the Prosiect Gwyrdd site is currently operational, it is running under test conditions and the Council cannot presently rely on the eventual contractual terms and conditions and the facility could close at any point during the testing period. In view of this, it is projected that the outturn at year end could be an underspend of around £100k. The original budget for 2015/16 takes account of the £1.264m savings required for this financial year.

Grounds Maintenance - There is currently a £26k adverse variance against the profiled budget, mainly due to a slight overspend to date on vehicle budgets. Discussions are ongoing to ascertain if there are further vehicles that are under-utilised with a view to meeting the savings targets set. The original budget for 2015/16 takes account of the £130k savings required for this financial year. The budget will be monitored closely to ensure these savings are achieved by year end.

Economic Development - There is currently a favourable variance of £31k to the profiled budget. Although expenditure on the Employment Training Service (ETS) is currently below budget, income levels are set to reduce as the programme winds down, so any underspend will be required to offset the drop in income levels. It is therefore anticipated that this service will outturn on target.

Leisure - There is currently a favourable variance of £35k to profiled budget. There are reduced costs due to staff vacancies in the Leisure & Tourism and Countryside Divisions. In addition, filming fees at Cosmeston Medieval Village have exceeded the budgeted figure. As reported last month, the introduction of car parking charges at Country Parks has not yet been introduced and the targeted savings for the Division will now not be achievable. Any underspends will need to be used to offset any income shortfall. At this stage the overall budget is anticipated to outturn on target.

Planning and Transportation - There is currently a favourable variance of £63k to profiled budget. This is due mostly to a higher than budgeted level of planning fee income. At this early stage of the year it is anticipated that this service will outturn on target.

Capital

Appendix 2 details financial progress on the Capital Programme as at 31st August 2015.

Jenner Park and Colcot Pitches - Emergency Powers have been used to approve the inclusion of £853k for the above scheme in the Capital Programme. The work will include the installation of a 3 G pitch at Jenner Park and five a side pitches at Colcot. This scheme will be funded from the Jenner Park Reserve.

Coast Protection and Land Drainage General - £150k has been allocated within this budget for works towards the Causeway Improvement Scheme. In order to enable a more co-ordinated approach to the scheme, it has been requested that £150k is vired to the Causeway Improvement Scheme.

Penarth Heights Cycle Parking Project - Emergency Powers have been used to approve the inclusion of £25k in the Capital Programme for Penarth Heights Cycle Parking Project. This scheme will be funded from S106 monies.

Llantwit Major Bedford Rise Play Area - It has been requested that the 2015/16 Capital Programme is increased by £21k for works at Bedford Rise Play Area. This scheme will be funded from s106 monies.

For all schemes where it is evident that the full year's budget will not be spent during the year, the relevant officers are required to provide an explanation for the shortfall and this shall be taken to the earliest available Cabinet.

Resource Implications (Financial and Employment)

As detailed in the body of the report.

Sustainability and Climate Change Implications

There are no direct implications arising from this report.

Legal Implications (to Include Human Rights Implications)

There are no legal implications.

Crime and Disorder Implications

There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

There are no equal opportunity implications.

Corporate/Service Objectives

Effective monitoring assists in the provision of accurate and timely information to officers and Members and in particular allows services to better manage their resources.

Policy Framework and Budget

The report is in accordance with the Policy Framework and Budget.

Consultation (including Ward Member Consultation)

The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation.